VICTORIA, Texas, July 27 /PRNewswire/ -- FVNB Corp. (Nasdaq: FVNB)
announced today that on July 26, 2000, the Board of Directors of FVNB Corp.
declared a regular cash dividend of $.35 per share payable on August 18, 2000
to shareholders of record as of August 4, 2000.
FVNB Corp. also announced that consolidated net income of the Company for
the six months ended June 30, 2000 was approximately $4.18 million, or
$1.76 per share. This compares to consolidated net income of approximately
$3.82 million, or $1.61 per share, for the same period in 1999. The growth in
net income of approximately $.36 million from 1999 to 2000 represents an
increase of approximately 9.42%. The Company's return on average assets of
1.28% and return on average equity of 13.95% for the six months ended
June 30, 2000 compare to 1.22% and 13.22%, respectively, for the same period
in 1999.
As of June 30, 2000 and December 31, 1999, the Company reported total
consolidated assets of approximately $673 million and $655 million,
respectively. Consolidated deposits of the Company were approximately
$563 million at June 30, 2000 compared to $555 million as of
December 31, 1999.
"We are continuing to experience excellent growth in earnings as a result
of increased non-interest income and steady quality loan growth. Net income
is up over 9% for the first six months of 2000. Net of non-recurring items,
such as interest recoveries on restructured loans and a negative provision for
loan losses, totaling $.963 million in 1999, and interest recoveries of
$.201 million in 2000, our core earnings are up over 39%. That indicates that
our strategy of independent, responsive banking is paying off," commented
David M. Gaddis, President & Chief Executive Officer of FVNB Corp.
Noted Financial Data
-- Net interest income of the Company was approximately $13,468,000 in
the first six months of 2000 compared to $12,851,000 for the same period in
1999. This increase of approximately $617,000, or 4.80%, is due primarily to
an overall increase in the yields on earning assets as well as a shift in the
mix of earning assets from investment securities into higher yielding loans.
In addition, the Company experienced rising rates on interest-bearing
liabilities during the first six months of 2000 resulting in higher interest
costs. These increased interest costs were more than offset by the favorable
impact of increased yields on earning assets.
-- Non-interest income of the Company was approximately $5,082,000 in the
first six months of 2000 compared to $3,494,000 for the same period in 1999.
This represents an increase of approximately $1,588,000, or 45.45%.
Significant components of the Company's non-interest income include trust
service fees, services charges and fees on deposit accounts, and income from
leasing activities. Non-interest income increased in 2000 due primarily to
the impact of rental income recognized as the result of the operating lease of
an aircraft entered into by a wholly owned operating subsidiary of First
Victoria National Bank in June 1999. First Victoria National Bank is a wholly
owned subsidiary bank of the Company.
-- The Company reported non-interest expense of approximately $11,878,000
for the first six months of 2000 compared to $10,482,000 for the same period
in 1999. This represents an increase of approximately $1,396,000, or 13.32%.
Significant components of non-interest expense include salaries and employee
benefits, net occupancy and furniture and equipment expense, professional
fees, data processing expense and amortization of goodwill and intangibles.
The Company experienced increases in this area during 2000 due primarily to
expenses associated with leasing activities entered into by First Victoria
National Bank in June 1999.
-- On April 14, 2000, First Victoria National Bank completed the
acquisition of Mid-Coast Savings Bank. Upon completion of the transaction,
the two banks merged with the existing branches of Mid-Coast becoming branches
of First Victoria National Bank. Total intangible assets associated with the
acquisition were approximately $4,257,000.
FVNB Corp. is a financial holding company whose principal operating
subsidiaries are First Victoria National Bank with locations in Victoria, Port
Lavaca, Taft, Edna, and Ganado, Texas, and Citizens Bank of Texas N.A., with
locations in New Waverly, The Woodlands, and Huntsville, Texas. As of
June 30, 2000, total consolidated assets of the company were approximately
$673 million and consolidated equity capital was approximately $62 million.
["Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained in this release which are not
historical facts contain forward looking information with respect to plans,
projections or future performance of the Company, the occurrence of which
involve certain risks and uncertainties detailed in the Company's filings with
the Securities Exchange Commission.] Subsidiary Banks, Member FDIC
FVNB Corp.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
Condensed Consolidated Balance Sheets June 30, December 31, June 30,
2000 1999 1999
Assets (In Thousands)
Cash and due from banks $ 25,732 $ 26,993 $ 23,327
Federal funds sold 2,610 38,170 3,570
Investment securities 153,665 158,776 171,403
Loans and leases 441,846 387,407 366,442
Allowance for loan and lease losses (4,604) (4,573) (4,213)
Premises and equipment 30,729 30,693 31,790
Goodwill 14,543 10,719 10,721
Other assets 8,514 6,999 8,189
Total Assets $ 673,035 $ 655,184 $ 611,229
Liabilities
Deposits:
Non interest-bearing deposits $ 98,494 $ 90,857 $ 86,798
Interest-bearing deposits 464,103 463,963 412,791
Total deposits 562,597 554,820 499,589
Federal funds purchased and securities
sold under agreements to repurchase 11,900 3,750 16,750
Other borrowed funds 28,040 27,827 29,014
Other liabilities 8,393 8,478 6,873
Total Liabilities 610,930 594,875 552,226
Shareholders' Equity 62,105 60,309 59,003
Total Liabilities
& Shareholders' Equity $ 673,035 $ 655,184 $ 611,229
Capital Ratios
Leverage Ratio 7.88% 8.40% 8.17%
Risk Based Ratios -
Tier I Capital 10.96% 12.23% 12.54%
Total Regulatory Capital 11.94% 13.28% 13.58%
Condensed Consolidated Statements
of Income Three Months Ended Six Months Ended
June 30, June 30,
(In Thousands, Except Per Share Amounts) 2000 1999 2000 1999
Interest income $12,791 $11,968 $24,462 $22,330
Interest expense 5,713 4,780 10,994 9,479
Net Interest Income 7,078 7,188 13,468 12,851
Provision for loan and lease losses 60 (150) 110 (145)
Net Interest Income After Provision
For Loan and Lease Losses 7,018 7,338 13,358 12,996
Non-interest income 2,649 1,712 5,082 3,494
Non-interest expense 6,324 5,394 11,878 10,482
Income Before Income Taxes 3,343 3,656 6,562 6,008
Income tax expense 1,228 1,351 2,386 2,193
Net Income $ 2,115 $ 2,305 $ 4,176 $ 3,815
Basic earnings per share $ .90 $ .97 $ 1.76 $ 1.61
Diluted earnings per share $ .84 $ .93 $ 1.68 $ 1.56
Return on average assets 1.27% 1.47% 1.28% 1.22%
Return on average equity 13.92% 15.50% 13.95% 13.22%
For Further Information: David M. Gaddis
President & CEO
FVNB Corp.
361-572-6500
SOURCE FVNB Corp.
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http://www.fvnb.com
Company News On-Call:
http://www.prnewswire.com/comp/124759.html or fax,
800-758-5804, ext. 124759
CONTACT:
David M. Gaddis, President & CEO of FVNB
Corp., 361-572-6500
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